Oil service terms not improving despite oil price recovery – BHGE VP

Sep 26, 2018

Ado Oseragbaje, the sub-Saharan Africa vice-president of Baker Hughes, a GE company (BHGE), in a recent interview with TOGY spoke about modular refining opportunities and the outlook for upstream operations.

On modular refineries he said: “With some of the challenges we have around vandalism, cost of infrastructure and the transportation network, modular refineries represent an opportunity because you can localise and have the final product close to the market. One of my concerns is regulation, from a technical and quality-standards standpoint. Technical and operational regulations need to be improved.”

On the outlook for the upstream sector following the recent downturn and recovery of oil prices, he said: “Prices are improving, but the reality is that the service terms and conditions are not necessarily improving at the same rate or scale. We now face a very delicate balance and quite a difficult challenge for the service sector.”